i think clinteroo bring a very intersting point
anyone feel free to comment on this
Posted by: Clinteroo on September 16, 2008 08:15AM
In response to: Re: Markets and SGX by jerryfrancis
A friend of mine runs a public company. He was telling me a major problem with many companies, especially junior mining companies is even the ones with money are hugely impacted by the asset based commercial paper fiasco.
A company will do a private placement and gets lots of cash. The question is what happens with that cash? It doesn't just sit in a bank waiting until it needs to be used. Many invested them in ABCP and now are having a hard time getting the money.
For example Kodiak got $55 million. Obviously it has used some but the vast majority would be invested somewhere until it is actually needed. Hope KXL and SGX have invested wisely.... I am betting this is something they will not disclose.
